procuRE Challenge Brief

The project procuRE has received funding from the European Union’s Horizon 2020 Research and Innovation Programme under the Grant Agreement No. 963648. The sole responsibility for the publication lies with the editor and does only reflect the author's view. The European Commission and Agency is not responsible for any use that may be made of the information contained herein. HORIZON 2020 The Framework Programme for Research and Innovation Project acronym: procuRE Grant Agreement Number: 963648 Project full title: Pre-commercial Procurement of Breakthrough Solutions for 100% Renewable Energy Supply in Buildings Call identifier: H2020-LC-SC3-2020-Joint-Actions-1 Challenge Brief [TD2] (EXCERPT – NOT TENDER VERSION) Version: 1.0 Last update: 17.11.2021 procuRE – Challenge Brief [TD2] Page 2 of 28 TABLE OF CONTENTS Challenge Summary ................................................................................................................... 3 1 Technical Criterion ............................................................................................................ 6 1.1 T1 – System Integration ....................................................................................................... 6 1.1.1 Renovation Approach to achieve 100% RES in existing buildings. ............................................................................6 1.1.2 System package design .............................................................................................................................................6 1.1.3 System package monitoring and management ........................................................................................................7 1.1.4 Energy production and distribution components.....................................................................................................9 1.1.5 Energy storage components .....................................................................................................................................9 1.1.6 Energy management components .........................................................................................................................10 1.2 T2 – Degree of achievement of objectives in reference / demonstration buildings ........ 11 1.2.1 Energy Key Performance Indicators .......................................................................................................................11 1.2.2 IEQ Key Performance Indicators .............................................................................................................................15 1.2.3 Environmental Key Performance Indicators ...........................................................................................................16 1.2.4 Suggestions of further performance indicators ......................................................................................................16 1.3 T3 – Training & Education of professionals and users ...................................................... 17 1.4 T4 – Innovativeness compared to market state-of-art ..................................................... 18 2 Commercial Feasibility Criterion ...................................................................................... 19 2.1 CF1 – Investment and energy service contracting and financing models / Costs ............ 19 2.2 CF2 – Commercialisation Plan ........................................................................................... 20 3 Project Management Criterion ........................................................................................ 21 3.1 PM1 – Interface to procurers ............................................................................................ 21 3.1.1 Toolkit .....................................................................................................................................................................21 3.1.2 Co-Design Procedure ..............................................................................................................................................21 3.1.3 Continuous Commissioning ....................................................................................................................................22 3.2 PM2 – Quality and completeness of the work-plan as well as detail of task and result descriptions .................................................................................................................................... 22 3.3 PM3 – Feasibility of plan and resources to meet the objectives ...................................... 23 ANNEX ..................................................................................................................................... 24 4 Annex A: procuRE building blocks .................................................................................... 25 5 Annex B: procuRE Personas ............................................................................................. 26 procuRE – Challenge Brief [TD2] Page 3 of 28 Challenge Summary Background, current situation, expected demand It is expected that 90% of the currently existing building stock will still be in service in 2050, the year in which many cities want to reach carbon neutrality. European policies and legislation are in place to accelerate the decarbonisation in the building sector, starting out, however, from a situation where renovation is making only a moderate contribution (0.4 to 1.2% of buildings per year) and the complete replacement of the existing stock is very slow (1-1.5% per year) and not desirable. To achieve our climate goals, renovation in Europe must be accelerated, lifting many more existing buildings to an optimal efficiency level as well as maximising the self-use of renewable energy. An increasing number of cities, regions and other owners of major building portfolios wish to achieve 100% renewable energy supply (RES) in their buildings. These actors are faced with barriers, such as individual constraints for adaptation for each building, provision of supply and storage, optimisation of operation and integration of solutions across technologies. Integration of the optimal selection of cutting-edge Renewable Energy technologies requires a level of expertise most owners and their planners cannot be expected to acquire. The construction sector is extremely fragmented, where more than 95% of manufacturers and professionals operate as Small and Medium-Sized Enterprises (SMEs), and most in separate national or local markets. Furthermore, investors have a natural preference for low-risk solutions and a scepticism to complexity. Currently, there are no adequate products on the market which can deliver a 100% renewable building without undertaking invasive measures to the envelope. The Buyers Group alone operates 21,000 buildings; almost a dozen other procurers are already following the project with more expected. Their portfolios constitute ten-thousands of buildings with sufficient envelope quality to deploy the envisioned solutions. Procurers wish these buildings to be supplied by 100% local RES within a short timeframe. To make this possible, it is expected that suppliers will follow an “active approach”, optimising heavy loads in heating, ventilation, and air conditioning (HVAC) etc, adding intelligent (remote) control, energy production and storage while responding to specific usage requirements to optimise the entire building. The common challenge Suppliers are to design, develop, and test an innovative Renovation Approach capable of generating Renovation Packages delivering 100% renewable energy supply to any existing non-residential building with adequate envelope quality. The Renovation Approach is to be tested through generating and implementing Renovation Packages for specific non-residential buildings in Buyers Group portfolios, the Demonstration Sites. procuRE – Challenge Brief [TD2] Page 4 of 28 Figure 1. From a generic Renovation Approach to specific Renovation Packages A supplier's Renovation Approach is expected to constitute a complete set of methods, technologies, services and devices integrated in a well-documented toolkit which includes at least: building assessment framework, system design and control approach, RES production, interoperable integration of legacy devices, data management and data sharing, building control, storage solutions, finance and contracting models, life-cycle cost approach, continuous commissioning, behaviour-targeting education and training of occupants and professionals. During Phase I and Phase II, suppliers adapt, extend, and apply their Renovation Approach to generate Renovation Packages for six specific buildings in Buyers Group portfolios with increasing level of detail. During these two phases, suppliers will apply their Co-Design procedure 1 to facilitate information exchange, involvement, decision-making etc. Successful tenderers for Phase III will then implement the Renovation Packages in three allocated buildings, ensure performance and apply the Continuous Commissioning procedure. The initial delivery of the Renovation Package is to be turnkey-ready. Starting with the proposal, all phases constitute R&D work on the supplier's Renovation Approach, resulting in continuous improvements based on lessons learnt during application and research. Figure 2. Summary of core activities per phase 1 The Co-Design procedure constitutes part of the Renovation Approach as described in the Challenge Brief. procuRE – Challenge Brief [TD2] Page 5 of 28 Demonstration Sites The Demonstration Sites are six non-residential buildings: three schools and three offices. Information on the buildings is provided in the Annex C of the Challenge Brief. Structure of the document The Challenge Brief is divided into sections each linked to a corresponding award sub-criterion (e.g. 1.1. to sub-criterion T1, 2.1 to sub-criterion CF1). The Tender Application Template (TD6) follows the same structure and provides detail on expected content in each section of the proposal. Information completing the description of the Challenge (sections 1 to 3) is collected in the Annex. The following content is included: • Annex A: procuRE building blocks: Referencing building blocks presented in pitch deck and during OMCs to sections in this document • Annex B: procuRE Personas: Describing the user groups to be expected on-site • Error! Reference source not found. • Error! Reference source not found. • Error! Reference source not found. The most recent version of the Pitch Deck summarising content from OMCs and including largescale version of graphics used in Tender documents can be downloaded via the procuRE website. procuRE – Challenge Brief [TD2] Page 6 of 28 1 Technical Criterion 1.1 T1 – System Integration 1.1.1 Renovation Approach to achieve 100% RES in existing buildings. Challenge: According to the Energy Performance of Buildings Directive 2018/844/EU (EPBD), the energy performance of a building shall be determined on the calculated or the actual annual energy demand for meeting the different needs associated with its typical use, including the energy demand for heating and cooling to maintain the desired indoor comfort, and for providing domestic hot water. In procuRE, the electricity consumption of all appliances and systems within the building are to be included in the actual final annual energy demand. The actual annual energy demand of a building is, to the greatest economically feasible extent, to be covered by on-site renewable energy sources. “On-site” refers to the building and its nearest vicinity – air, surface, ground and underground –, which, in any case, cannot exceed the building premises or attached structures. Although, for some Demonstration Sites large land surface is available, the procurers want to make sure that the solutions adopted are highly replicable at all their building stock. During the project, solution proposals for functional structures within described perimeters (e.g. courtyard) will be assessed during Co-Design on a case-by-case basis. The extent to which this goal is met is measured with indicators (section 1.2). Energy drawn from networks or otherwise delivered to the site is not an on-site energy resource. Self-consumption is to be maximised hereby reducing interaction with energy networks. Local and temporal disparities between the production and use of renewable energy in buildings should be considered with sufficient frequency. Energy networks can be relied on to cover exceptional weather, failures etc. The impact of operators and occupants increases in highly efficient and integrated buildings. The dimensions of control, comfort and costs are to be balanced in the overall approach. 1.1.2 System package design Context: Most current energy retrofit projects do not set out from application of an adequate set of tools, but are disjointed, involving only one or a few buildings, and design starts more or less from scratch in each project. Also, many current retrofit projects result in buildings which do not operate as designed. Specific efficiency measures in the design are either not designed with the users in mind or are often not respected in construction and operation, resulting in performance not matching the original design intent. In some instances, individual systems are optimised impeding the efficiency of other systems or the building as a whole. In addition, the specification of building performance is often limited to targets for final energy or primary energy use after retrofit. In consequence, Continuous Commissioning is often not possible. Current contractors often externalise the effort of coordinating specialists to procurers who do not have the necessary resources and in-house expertise to perform these tasks efficiently and effectively. Challenge: Suppliers are expected to offer a fully documented Renovation Approach which represents the full mastery of system specifications, independent of the size, type, and location of the building. Design procedures in the Approach are to minimise the planning efforts, concentrating and organising the necessary expertise from specialists, in particular of complex HVAC systems. The Renovation Approach must include a modular and adaptable set of technologies for energy production, storage, procuRE – Challenge Brief [TD2] Page 7 of 28 and management with effective and reliable components. Challenges for each of these technologies are described in the following sections. As part of the Renovation Approach, suppliers must include comprehensive design procedures which can be as easily applied to projects covering single-buildings renovations and scalable to larger portfolio renovations anywhere in Europe. The following elements are considered the minimum necessary: A clearly specified design workflow extending across the entire renovation process (design to operation) and the entire value chain. This must enable all disciplines (architects, engineers, technology providers, system integrator, energy manager…), procurers, building occupants and other stakeholders to exchange information and participate in design with clear trigger points and checks to ensure all required specialists (e.g., HVAC) and stakeholders are involved. Current reliance on procurers to fill these gaps must not be continued. The workflow is also to explain and ensure that all regulation and code requirements are met. For interaction with procurers and in support of their decision-making, the workflow has a specific “Interface to Procurers” (see Section PM1). A modelling and selection methodology enabling the supplier to quickly select the best suited components for any given set of buildings, e.g. from the technologies and services mentioned in the Sections 1.1.3 to 1.1.6. This includes any components to complete the HVAC design. The output of these efforts results in a Renovation Package which is specific to one building, containing clear definition of components and systems performance specifications that can easily be understood by non-technical personnel. The Renovation Packages generated must consider current building characteristics, future building use, context, regulatory framework, and climate at the location of the building. (The minimum criteria for a Renovation Package for each phase are described in TD1 section 2.1.2). Further elements may be included by suppliers. Procurers will welcome innovative platforms, such as BIM or others, capable of linking stakeholders, integrating data streams, highlighting decision requirements, and providing necessary tools for modelling and verification, including to measure the energy, comfort, and health performance, as well as acting or offering building logbooks. It is considered a merit if a platform centralises and harmonises core processes from initial design to operation. This does not preclude attaching value-adding modules or micro-services from one or more third-party vendors. 1.1.3 System package monitoring and management Context: Most current systems for monitoring and managing buildings in operation still treat each component of a system as a separate unit, with a specific function which is independent of the others. This impedes attempts at optimal operation of the whole system. This fragmented approach is often reflected in the structure of databases. To optimise behaviour and settings, operators and occupants must analyse multiple components in parallel, themselves. Monitoring and management hardware and software can offer more. Challenge: Suppliers are challenged to include in their Renovation Approach a streamlined approach to components and processes for the operation phase of the building. Management and monitoring are to provide a “second view” on the building to ensure that design performance is achieved during operation without impeding other performance characteristics (e. g., comfort). The automated and continuous assessment of the monitoring data available needs to be the basis for energy efficiency optimisation and Continuous Commissioning (see PM1). As occupants are central to the functioning of procuRE – Challenge Brief [TD2] Page 8 of 28 each building – there is no smart building without informed and smart users – the monitoring systems must have user interfaces that deliver easy-to-understand information to support behaviour change (see T3). Suppliers are expected to define clear and meaningful Key Performance Indicators (KPIs) that allow the building energy performance to be evaluated from an energy and environmental point of view at appliance, system and building levels as well as comfort and other critical or desirable functions. A mandatory set is described in T2. Minimum and targeted performance values are to be defined for applicable KPIs, complemented by, and linked to contractual regulations regarding costs and conditions, among other aspects, in case of divergence. These indicators should be defined in a way to demonstrate, through a Continuous Commissioning, the assessed performance also during the building operation, considering the metering and billing of energy use. These indicators give a comprehensive overview of the building, including flexibility, energy efficiency, occupant comfort, awareness and satisfaction, Smart Readiness Indicator. For an efficient collection of measurements and a reliable calculation of the indicators, a Monitoring System Guideline needs to be developed where the minimum set of requirements (sensors and meters) for the monitoring and control system to be installed are defined taking precisions and tolerance fully into account. If additional sensors are deemed to provide added-value or be requested by procurers during Co-Design, these are to be documented in a subsection, including an explanation of their purpose. This Guideline will also contain the definition of all procedures linked to assess the minimum and targeted performance parameters, also feeding into Continuous Commissioning. The system must be able to recognise manual temporary overrides by building operators diverging from the automated management and calculate and verifiably record any additional costs resulting from such activity. Cases of divergence are to be collected, summarised, and presented as part of Continuous Commissioning procedure (PM1). In addition to this, the monitoring system should be equipped with a remote facility and an energy management system with control and maintenance features for the building’s technical systems. The BEMS (Building Energy Management System) should base the control not only on fixed schedules, but also on occupation, occupant behaviours and needs, system efficiency, RES availability, storage state of charge and network energy utilisation peaks and fares, among other parameters Forecasts are to cover beyond the near-term future (i.e. next hours). The system should include easy access for building operators to override system settings temporarily, record the reasons for such activity and indicate the consequence of such activity (for more detail see 1.1.6). It should be transparent to the operator when or whether the system restores automated control. The use of smart controls based on predictive or advanced rule-based controls would be a plus. The system shall also create minimal and targeted information for informing and influencing occupant behaviour when deemed necessary (see T3). Upon request, it should be possible to integrate easily understandable graphics and core figures in public displays or websites linked to the building. Similarly, as fault detection and diagnostics reduce energy consumption and discomfort due to interruption of the service, predictive maintenance strategies should be offered to guarantee the early detection of malfunctioning components, extend equipment lifespan, the reduction of safety, health, environmental and quality risks, as well as overall reduced costs. procuRE – Challenge Brief [TD2] Page 9 of 28 1.1.4 Energy production and distribution components Context: Public administrations and other building owners are flooded with information on RES and HVAC technologies. However, it is currently very difficult for retrofit procurers to build the necessary analytical vision of what HVAC and RES solutions they should adopt and procure for their building stock. Challenge: suppliers are expected to improve the framework conditions for procurers to select and adopt renewable production and distribution technologies which have a low final energy use, high renewable energy harvest and minimal life cycle impact on the environment and the costs (LCA and LCC). Suppliers are encouraged to pre-select technologies as part of their Renovation Approach. As a set, pre-selected technologies must cover the procuRE climatic zones, regulatory regimes, and contexts, and be able to be safely applied to offices and schools. Most technologies should be already on the market or soon ready to be commercialised, with adaptation to the social, economic, regulatory, and environmental context of the Buyers Group Demonstration Sites, completed or at least planned. Suppliers are expected to mostly select proven technologies that are cost-effective and easy-toinstall, with performance demonstrated by standards or specifications or for selected core components, demonstrated during prototype testing in Phase II. A minimal and coherent set of scalable and modular pre-selected technologies capable of delivering all above will be considered a plus. Information provided as part of the Renovation Approach for inclusion in Renovation Packages must include core descriptions and indicators enabling procurers to acquire and improve the knowledge base to continuously speed up and improve decisions during Co-Design and with view on multiple future renovations of the building stock using the Renovation Approach. 1.1.5 Energy storage components Context: Energy storage will play a key role in enabling the EU to develop a low-carbon society and to ensure lasting energy flexibility and security. For a 100% RES driven building, the challenge is to have a balance between supply and demand. For this, the use of thermal and electric storage becomes key for increasing the building flexibility, shifting loads, and shaving peaks. Challenge: suppliers are expected to improve the framework conditions for procurers to select and adopt thermal and electric storages technologies which maximise the self-use of the renewable energy produced on-site, they balance (high) specific energy storage capacity, low specific investment cost and minimal life cycle impact on the environment and the costs (LCA and LCC) depending on building constraints. Suppliers are encouraged to pre-select technologies as part of their Renovation Approach. As a set, pre-selected technologies must cover procuRE climatic zones, regulatory regimes and contexts and be able to be safely applied to offices and schools. Most technologies should be already on the market or soon ready to be commercialised, with adaptation to the social, economic, regulatory, and environmental context of the Buyers Group Demonstration Sites completed or at least planned. Suppliers need to describe how they will construct safe and reliable advanced energy storage solutions based on market or ready to be commercialised individual components, their performance, constraints, and requirements (e.g., system, space). Proven technologies should be procuRE – Challenge Brief [TD2] Page 16 of 28 The suppliers are requested to assess and provide illuminance values in lux (cd/m2), UGR (Unified Glare Index) and CRI (Colour Rendering Index) at representative working/training places. Both dynamic simulations and semi-dynamic methods, accounting for coupled artificial and natural lighting effects and for automated controls and accepted by European norms are acceptable calculation methods. The suppliers are requested to provide indication on the calculation method and the boundary conditions adopted, together with the results obtained as part of the deliverables at the end of each design phase. 1.2.3 Environmental Key Performance Indicators CO2 emissions during operation (E_CO2) The performance indicator relates on the carbon dioxide (CO2) emissions of the proposed retrofit solution during building operation; the emissions values are to be computed based on the net final energy drawn from energy networks. For each energy vector imported on site, the suppliers are requested to use CO2 emission factors derived from the most recent Covenant of Mayors (CoM) Emission Factors 2 . During the proposal, the most recent default values are to be used. During the project, national emission values reported in the CoM resource for each Demonstration Site are to be used. Assessment: The procurers will use the total from all vectors for the quantitative assessment of the system performance. ----RELEVANT ONLY FROM PHASE II Global warming potential over the system Life Cycle (E_GWP) Starting from Phase II of the design process, the Suppliers will be requested to also assess global warming potential (GWP, measured in kg CO2-Equivalent) of the system over its Life duration, from “cradle to grave”. GWP assessment will need to account for components’ manufacturing, transportation on site and disposal at life end, as well as for the installation process. These data are to be determined based on product-specific environmental product declarations (EPDs). If specific environmental declaration datasets are unavailable, recognised generic datasets 3 are to be used. Datasets need to comply with DIN EN 15804. Waste management (E_W) Starting from Phase II of the design process, the Suppliers will be requested to define and implement a plan for the management and possibly recycling of the waste materials produced during installation phases. Suppliers will need to provide information on the mass and type of waste generated together with the amount of such mass that will be recycled. 1.2.4 Suggestions of further performance indicators Suppliers may suggest further performance indicators to be documented and recorded in Renovation Packages, during lab-tests and/or operation across all sites. 2 Joint Research Centre Data Catalogue - CoM Default Emission Factors - European Commission (europa.eu) 3 For instance https://www.oekobaudat.de/en procuRE – Challenge Brief [TD2] Page 17 of 28 1.3 T3 – Training & Education of professionals and users Context: Operators – including energy professionally employed by the municipality as well as thirdparty contractors needed for repairs etc. – are faced with increasing complexity of building operation with many contractors having little to no experience with digital solutions. Whilst some issues are structural such as the lack of vocational education and training (VET), the suppliers of solutions also often consider training to be the responsibility of the customers. Occupants’ behaviour and habits influence the performance of a building, and more so in highly efficient and automated buildings. There is a significant gap between what is known to work to engage individuals in behaviour change and what is currently being applied in practice in the energy efficiency domain. Projects for public buildings tend to address the collective rather than the individual which leads to the typical problems surrounding the use of public resources and personal involvement. Challenge: Suppliers are expected to deploy innovative training and education methods and materials. Learning should be blended in daily use, in particular for ICT and software. The flow between usage and learning should be seamless, not creating a burden or a substantial effort to increase knowledge. Training of operators ICT-systems should be intuitive and instructive with learning incorporated using recent best practice, especially when new features are deployed. Suppliers will describe how assistance is provided transparently across systems and technologies. A single touch point would be considered a plus. Shared viewing solutions and / or secure remote desktops are expected. Suppliers provide a learning platform including a curated (self-)training programme for municipality staff including operators and if helpful procurers. The programme should be adapted to the requirements of the specific building based on the Renovation Package and be responsive to preexisting user knowledge. Procurers have no preference as to the formats used as part of the programme. Documentation of systems and hardware should clearly describe responsibilities in operation, regarding automation and any manual tasks needed on-site. Suppliers are expected to provide easily understandable materials and / or demonstrate innovative and interactive materials, (e.g. embedding existing smartphones and tablets for augmented realities) accessible for all professional levels including installers. In Phase III, instructions are to be provided in the official languages, and other native languages spoken by installers, where applicable. Regarding third-party contractors, suppliers are to outline what knowledge will be required for reliable and timely operation and maintenance activities and how this is ensured. Solutions could include training and accrediting installers. If full-service providers are to minimise dependency on inexperienced third-party installers in the long-term reducing the need for above, this should be referenced here, and quality and feasibility of the approach clearly described as part of PM2/3. Education of occupants The supplier’s approach to education will ensure the technical solution described above is feasible with users and will help to avoid the traditional operator-occupant conflict regarding comfort and requested, actual and perceived control. procuRE – Challenge Brief [TD2] Page 18 of 28 Suppliers are expected to develop a solution that makes occupants aware of their behaviour’s impact and, in combination with carefully tailored training measures, makes them feel responsible to reflect on their behaviour if it is energetically relevant or if health could be improved without increasing consumption. Suppliers will offer information and feedback to occupants which suggests specific action including information on how the building’s consumption levels would change as well as the impact (e.g. climate impact, monetary terms) of not acting documented to be most successful in the given context. The entire system will be designed to ensure that all the building occupants (workers, teacher, pupils…) can easily understand and interact with the building without any need for extensive training. Children and other curios occupants are to be considered with creative features. Both, on-the-spot learning elements for energy usage/savings, data or technology used in the building (e.g., via QRCodes, printable information) as well as serious games or gamification features (e.g. treasure hunts, orienteering, simulations) are to be provided. Games are accessible to teachers and can be used during on an average school hour and, where possible without additional effort, incorporate live data. Long-term competitions such as leading boards or topical challenges are only to be introduced if they are clearly incorporated into the overall education approach. Suppliers are invited to, where possible, utilise and reference personas described in Annex B: procuRE Personas in their descriptions of services. 1.4 T4 – Innovativeness compared to market state-of-art Context: It is the procuRE Buyers Group’s position that for many applications a sufficient range of technologies and components exists to renovate the Demonstration Sites to a 100% RES-level. The challenge does not lie in achieving a certain amount of energy savings or renewable energy production and storage, but to develop a complete and innovative Renovation Approach that addresses the requirements of the building owners to retrofit their building stock. Challenge: Suppliers are to prove how their proposed Renovation Approach goes beyond the current state-of-the-art in renovation, hereby showing that it is innovative; and which elements of it are to be further developed or improved in the R&D services to be delivered. procuRE – Challenge Brief [TD2] Page 19 of 28 2 Commercial Feasibility Criterion 2.1 CF1 – Investment and energy service contracting and financing models / Costs Context: Multiple barriers for public administrations exist to progress as expected in the Renovation Wave and to achieve 2050 targets. The most obvious are design and investments costs which limit the number of renovations which can be financed per year. Although the market is offering novel contracts to large private projects, these concepts remain often inaccessible for public procurers aiming to retrofit individual buildings (unattractive investment) and / or aiming for holistic and complex solutions as envisaged (perception of risk) and /or inadequate information performance on the energy efficiency measures is provided (both). As presented in the technical section, many procurers may not have the capacity or organisational capability to act on this gap. Since the issues arise from a lack of structured information, the Renovation Approach is to provide more clarity on the overall framework conditions to be deployed and in a second step calculate total cost of ownership for individual Renovation Packages, digressing from the current practice and preference of most procurers. Challenge: Suppliers are expected to develop and deliver an innovative approach to the financing of energy renovation and following O&M including (i) technical and financial due diligence (ii) financial risk quantification; (iii) identification of eligible public funding; (iv) access to platforms enabling matching of investment demand and offers. Leveraging available funding opportunities (public and/or private), suppliers must describe a financing scheme for single building retrofits and are expected to also offer a separate or complementary portfolio level scheme. These schemes leverage investment capital for public procurers able to cluster building retrofit actions to increase the scale of investment to make it more attractive to investors and reduce risk. Independent of the volume of the retrofit, the approach should clearly describe and quantify the investment (capex), energy services (opex) and contracting models as well as their costs and conditions to be used at least in the countries represented by the Buyers Group. Procurers do not state a requirement or specific preference for any contracting model. The approach should achieve the following to the largest extent possible: • Enable a larger number of renovations per year by flattening or reducing the cost curve • Increase confidence on benefits and reduce connected risks for procurers and investors by creating transparency about all aspects of models/funding and existing experience with it • Integrate innovative financing methods with funding opportunities to leverage a wider range of funds, including existing and upcoming (inter)national funding schemes for specific Renovation Packages • Produce swiftly preliminary and detailed economic plans including o structure of contracts for energy and facility management services, o clarity on ownerships and a clear and concise calculation of all costs for procurers at least on yearly basis (e.g. annual fees, design, investment, operation, and maintenance costs), including: ▪ the use of incentives, procuRE – Challenge Brief [TD2] Page 20 of 28 ▪ contracting schemes and ▪ financing models o as well as uncomplicated rule set for discretions from performance benchmark / KPIs induced by either party • Where relevant consider the EU taxonomy for sustainable activities. It would be considered a plus if future contracts would actively promote the social dimension of any action, creating new business opportunities and generating highly skilled jobs at local level as part of the planning, installing, and managing of the renovation solutions they will deliver. 2.2 CF2 – Commercialisation Plan Context: The construction market is highly fragmented and often siloed across countries. The large number of players increases the efforts and the perceived risks by procurers. The involvement of many actors also often leads to delays. At the same time, Europe is expected to start the Renovation Wave with many actors requiring a larger number of renovations to a higher energetic level. Challenge: suppliers are expected to describe the envisaged methodology and business plan to bring their Renovation Approach to the market, including: • Organisational structure facing procurers (e.g., one-stop-shops) • Applicability of Renovation Approach to other building types • Access to market in countries represented by the Buyers Group • Access to market across the EU and other countries • Measures on certification and standardisation procuRE – Challenge Brief [TD2] Page 21 of 28 3 Project Management Criterion 3.1 PM1 – Interface to procurers Context: Currently, operators of building cannot procure a full Renovation Package or the necessary service from one provider and are therefore forced to buy-in and sometimes coordinate services and works increasing the number of possible points of failure. This situation is overburdening the customer in terms of resources and the expertise required to be kept in-house. Challenge: suppliers are expected to remove procurers from the inner workflow of system package design to the largest extent possible whilst enabling procures whenever required to make rapid and informed decisions on the elements of the Renovation Package as presented. The challenge lies in finding the best balance between information and involvement. Ideally, the same interface is also during operation. 3.1.1 Toolkit A solution is required to manage information collection and exchange, file access and documentation with procurers (and possibly all specialists or other external stakeholders). It provides access to a recent version of the Renovation Package as well as the history. The solution must require as little training as possible. The solution could be integrated into a BIM solution or utilise existing cloud-based solutions. The solution must observe necessary certifications and data safety and protection regulation. Suppliers are free in suggesting how, where and when information is exchanged, or decisions are triggered. These procedures are to be described for design, planning and implementation (CoDesign Procedure) as well as operation & maintenance (Continuous Commissioning) clearly linking the description to the related supplier workflows. 3.1.2 Co-Design Procedure The initial commissioning of a renovation is complex and might require input or decisions from procurers at various points in time. Depending on the scope of the renovation, a wide range of requirements need to be collected from varying roles at the procuring organisation (individuals with decision making power or controlling the budget), operators of the building (energy or facility mangers) and occupants to the extent possible. Additionally, these inputs need to be aligned with a wide range of regulations and building codes (see Error! Reference source not found.). An efficient, effective, and reliable Co-Design Procedure includes at least the following: • One-face to the customer approach • Clarity on responsibilities and timing • A process for information requests from supplier to procurer ensuring minimal friction and effort • Regular exchange meetings in which suppliers inform the procurers about the most recent version of the Renovation Package and state of work • Decision making tools based on relevant information and the documentation in Renovation Packages • Transparency on the most recent version and recent changes in the Renovation Package aiding quick orientation by procures procuRE – Challenge Brief [TD2] Page 22 of 28 Suppliers should take the following key principles into consideration: • It is inclusive as it includes representatives from all stakeholder groups involved in the future service delivery and utilises feedback, advice and decisions service from procurers, operators, possibly occupants and other professionals in the field, • It is actor-centred as each step consists of the actions of individual or collective entities (persons or organisations) and is described, enacted, and analysed in that perspective, • It is iterative in its overall approach and in each step, as changes and adaptations are a natural part of the process, • It is evaluative since each step, its alignment with the previous ones (summative perspective) and its anticipated impacts on following steps (formative perspective) are evaluated empirically, • It is outcome-focused as it is designed to achieve outcomes, where the potential solutions can be rapidly tested, effectiveness measured, and the scaling of these solutions can be developed with stakeholders and in context. 3.1.3 Continuous Commissioning Continuous Commissioning should be a highly standardised process requiring little effort on the procurer side. Among others, clear timelines, trigger points for actions, report formats, meeting agendas ensure that targeted performance and costs are achieved and any mitigation measures necessary do not lead to sudden cost hikes. Any preparation of a Continuous Commissioning process considers at least: • Performance against KPIs • Divergence from performance targets including reasons and costs incurred from operator activity • Operating and maintenance costs • Impact of occupant behaviour, unused potentials, and the utilisation of education • Predictive maintenance • Recommendations for mitigation and / or optimisation measures Furthermore, the process should include transparent and open lessons to be learnt for future renovation measures in all or specific building types / scenarios to continuously improve the Renovation Approach and as a result future Renovation Packages, anticipating the close relationship supplier and procurer would have when more renovations are triggered. Wherever possible, Continuous Commissioning should be an extension of the Co-Design Procedure with clear documentation in monitoring and management systems and/ or the logbook. 3.2 PM2 – Quality and completeness of the work-plan as well as detail of task and result descriptions Challenge: suppliers are expected to remove inefficiencies typically encountered during design, retrofit and operation / continuous commissioning and make transparent how a Renovation Package is drafted, (co-)designed and finalised as well as how the renovation procedure would take place and what provisions exist during operation. This requires a comprehensive workplan, to procuRE – Challenge Brief [TD2] Page 23 of 28 include work packages, tasks, and responsibilities. The workplan needs to be drawn out for all PCP phases. 3.3 PM3 – Feasibility of plan and resources to meet the objectives Challenge: procuRE requires suppliers to integrate many systems (legacy and new). Suppliers are to take over the responsibility for interoperability and system-wide optimisation. The process of applying (and further developing) the Renovation Approach to any given building will have to be complete and smooth. The supplier is asked to describe the choice of any subcontractors for the tender and / or during the project lifetime, at the very beginning of Phase III at the latest. Overall, the details on the resources needed to achieve the work-plan have to be provided for each organisation involved in the tender. Other required resources, such as those for travel and licenses, need to also be quantified and provided. The operational capacity of the suppliers aligned with the plan and resources need to be convincing and address all phases (for detail in each Phase see TD1 section 2.1). The tender plan should have a convincing operational capacity, e.g., reflected already in the consortium composition, or by having a plan and reserved budget for involving local (sub)contractors while complying with the limit on use of subcontracting. The supplier shall describe how it will provide timely operational and maintenance services after the end of the project. If the approach relies on local partners or (sub)contractors not part of the initial consortium, the supplier shall describe how it will attract and enable these during Phase I and II for the following phases and / or the duration after the project. procuRE – Challenge Brief [TD2] Page 24 of 28 ANNEX The following content is complementary. procuRE – Challenge Brief [TD2] Page 25 of 28 4 Annex A: procuRE building blocks The common challenge was presented as a set of building blocks during open market consultation and in the pitch deck. The content of these slides has been incorporated in the Challenge Brief. The following graphic refers to relevant sections in this document.